Multiple Choice
What is meant by leverage?
A) It is the ability of a business to borrow from banks.
B) It refers to the use of debt to enable higher returns to shareholders.
C) It refers to the credit-worthiness of borrowers whom the bank extends loans to.
D) It is the practice of re-investing shareholders' funds in the business.
Correct Answer:
Verified
Correct Answer:
Verified
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